it governance archetypes for allocating decision rights pertemuan ke-7 s/d 10

IT Governance Archetypes for allocating decision rights

Pertemuan ke-7 s/d 10

Matakuliah : Pengantar IT GovernanceTahun : Feb - 2010

Bina Nusantara University 3

Governance ModelGovernance ModelThree Major ComponentsThree Major Components

• What decisions need to be made?What decisions need to be made?

(Domains)(Domains)• Who has decision and/or input rights?Who has decision and/or input rights?

(Styles)(Styles)• How are the decisions formed andHow are the decisions formed and

enacted? enacted? (Mechanisms)(Mechanisms)


What Decisions Need to be Made?(Domains)

There are five major decisions domains1. Principles2. Infrastructure strategies3. Architecture4. Business application needs5. Investment and prioritization


Who has Decision & /or Input Rights?(Styles)

1. Business Monarchy2. IT Monarchy3. Feudal4. IT Duopoly5. Federal6. Anarchy


Archetypes

To describe the combinations of people who have either decision rights or input to IT decisions.

Archetypes could describe how your enterprise makes one or more of the five keys IT decisions or

provides input to the decision makers.


IT Governance Archetypes


Key Players in IT Governance Archetypes


Business Monarchy

In a business monarchy, senior business executives make IT decisions affecting the entire enterprise.

Business monarchy rely on input for key decisions from many sources

• A group of, or individual senior managers (SVP; VP; Dean, Chair). Senior IT manager does not act independently.


IT MonarchyIT Professionals make IT decisions.Enterprises implement IT monarchies in many

different ways, often involving IT professionals from both corporate teams and business units.

This group proposes architecture rules to the senior IT management team. The senior IT management team ensures the clarity of the rules and owns the enforcement of architectural standards.

• Individuals or groups of IT senior managers.


Feudal• The feudal model is based on the traditional

model where the business unit make their own decisions, optimizing their local needs.

• The feudal modal was not very common because most enterprises were looking for synergies across business units.

• Unit leaders, key process owners or their delegates.


Federal

• The federal decision making model has a long tradition in government.

• Federal arrangements attempt to balance the responsiblities and accountability of multiple governing bodies.

• Shared by HSC senior management and other College/Unit senior management. May include senior IT management.


IT Duopoly

• IT Duopoly is a two party arrangement where decisions represent a bilateral agreement between IT executives and one other group (business unit).

• IT senior management and one other group, e. g., HSC senior management or College/Unit senior management.


Specifying the decision rights and accountability framework to encourage desirable behavior in the use of IT

Centralized Business Lead

Centralized IT Lead

Six Styles of IT Governance• Business monarchy

– Top Managers• Federal

– Combination of corporate center and SBUs• Feudal

– Each SBU makes independent decisions• IT Duopoly

– IT group and one other group• IT monarchy

– IT specialists• Anarchy

– Isolated individual or small group decision making


Anarchy

Duopoly

Federal

Feudal

ITMonarchy

BusinessMonarchy

IT Investment and Priority

Business Applications

IT Infrastructure

IT Architecture

IT Principles

1

1 1

1

12

2

2

22

3 33

3

3


Anarchy

• Anarchies are the bane of the existence of many IT groups and are expensive to support and secure.

• Individual users or small groups of users.


How the typical enterprise govern IT DomainsDomains PrinciplesPrinciples ArchitectureArchitecture InfrastructureInfrastructure Business Business

ApplicationsApplicationsInvestment & Investment &

PrioritiesPriorities

StylesStyles InpuInputt DecisionDecision InputInput DecisionDecision InputInput DecisionDecision InputInput DecisionDecision InputInput DecisionDecision

Business Business MonarchyMonarchy

00

IT IT MonarchyMonarchy

11

FeudalFeudal

FederalFederal

DuopolyDuopoly

AnarchyAnarchy

00

88331515

00 00

3636

1414

33

1818

2727 00 66 00 77 11 1212 11 3030

7373 59592020 1010 00 88 00 99

00 00 11 22 11 1818 00 33

4466

5599

8811

9933

3030 2727

2727 3030

44 66

1515 3030 2323 1717 66334400 0011 11 00 0033 11


• Typical Governance arrangements for IT Principles

• Typical Governance arrangements for IT Architecture

• Typical Governance arrangements for IT Infrastructure Strategies

• Typical Governance arrangements for IT Business Application Needs.

• Typical Governance arrangements for IT Investment and prioritization.


Analyzing different governance patterns across enterprises

1. Strategic and performance goals2. Organizational structure3. Governance experience4. Size and diversity5. Industry and regional differences


Key IT Governance Decisions

IT Principles DecisionsHigh-level statements about how IT is used in the business

IT ArchitectureDecisions

Organising logic for data,applications, and infrastruc-ture captured in a set ofpolicies, relationships, andtechnical choices to achievedesired business and technical standardisationAnd integration

IT InfrastructureDecisions

Centrally co-ordinated, sharedIT services that provide thefoundation for the enterprise’sIT capability.

Business ApplicationsNeedsSpecifying the business needfor purchasing or internallydeveloped IT applications.

IT Investment andPrioritisation decisions

Decisions about how muchand where to invest in IT,including project approvalsand justification techniques.


The Governance ModelThe “Harmony ‘What-How’ Framework”

StrategyStrategy GovernanceGovernanceArrangementsArrangements

PerformancePerformanceGoalsGoals

DesirableDesirableBehaviorsBehaviors

GovernanceGovernanceMechanismsMechanisms

Metrics &Metrics &AccountabilitiesAccountabilities

HowHow HowHow HowHow

WhatWhat WhatWhat

WhatWhat WhatWhat


Industry & Regional Differences in IT Governance

• Many factors influence governance requirements :– Industry– Region– And so on

• Industry differences :– For profit vs Not-for-profit and Government sectors– Financial services – And so on


• Region differences :– European firms vs Asia-Pacific firms – European firms vs American firms.– And so on


LJMU Federal Governance Model Continuing)

Business Applications Needs

Information Management

Steering GroupBusiness Membership

Development Programme

Business Membership

IT Steering Group

Business Membership

ArchitecturePrinciples

InfrastructureIT

Membership

Investment & prioritisation

MonitoringComplianceReview


LJMU Governance Membership

• 7 members of the LJMU Senior Management team, out of a total of 16

• School Directors• Service Directors – Library, Estates, HR• Admin/project/resource managers• All ICT Senior Managers


What Can Governance Do For You?

• Get buy-in across the board • Do it with them, even if they don’t do it to

themselves• Change behaviour, not just technology


EA & Governance• Executive buy-in to EA approach

– Within LJMU Governance structure, Architecture already identified as responsibility of Information Management Steering Group

• Demonstrate value of EA approach– ‘burning platform’ required, provided by existing

Student Experience Review initiative

• Visibility– Exposes Senior Management to EA approaches


Selling EA & Governance• Speak the language of the business

– Or something as close as you can get• It’s all about value

– The business has to see that this will promote better IS decision-making to support the business better

• Show them pictures– Not like I’ve been doing in this presentation…– EA development will provide the pictures– See JISC SOA animation

http://www.jisc.ac.uk/whatwedo/programmes/programme_eframework/soa.aspx




Selling EA & Governance• Business value:

– Business wants to know how to analyse staffing requirements in light of increasing self-service

– ‘As Is’ Architecture – self-service capability mapped to business processes as of now

– ‘To Be’ Architecture – self-service capability mapped to business processes in light of move to Campus Solutions

• Giving a visual representation that addresses the business problem


So, Governance…

What is it ?Why do you want it?How can you get it?

What will you do with it when you’ve got it?


Quiz

it governance archetypes for allocating decision rights pertemuan ke-7 s/d 10

Documents

senior business executives

group business

hsc senior management

collegeunit senior management

key decisions

mechanismswhat decisions

business units

decision andor input